Re­gional growth promis­ing

Good news for Toowoomba, with the De­cem­ber quar­ter me­dian house price re­port show­ing the re­gion is ex­pe­ri­enc­ing strong price growth.

The Courier-Mail - Property - - REALESTATE | MARKET OUTLOOK -

THE re­lease of the REIQ’s De­cem­ber quar­ter me­dian house price re­port yes­ter­day showed Toowoomba as one of the strong­est re­gions for property price growth in Queens­land.

Ac­cord­ing to the REIQ’s pre­lim­i­nary sales data at the time of writ­ing, the me­dian house price in Toowoomba in­creased 6.5 per cent to $329,000 dur­ing the De­cem­ber quar­ter and posted equally im­pres­sive price growth of 8.5 per cent across the year.

Its num­bers of house sales were also up by 11 per cent dur­ing the quar­ter and 13 per cent across the year.

The De­cem­ber quar­ter data also showed that dur­ing the past five years, the Toowoomba re­gion recorded me­dian house price growth of 23.6 per cent – the high­est of all ma­jor re­gions in the state across that time frame.

In com­par­i­son, Bris­bane posted 10.3 per cent across five years and 4.9 per cent dur­ing the past year.

While fur­ther anal­y­sis into the Toowoomba mar­ket had not been pos­si­ble in time for this col­umn, our most re­cent re­search found REIQ ac­cred­ited agents in the re­gion be­lieved sales mar­ket ac­tiv­ity hadn’t been this good for a num­ber of years.

And, while there may have been some con­cern re­gard­ing the lo­cal econ­omy, re­cent coun­cil in­cen­tives were en­sur­ing lo­cal con­trac­tors and de­vel­op­ers were work­ing on projects based in the re­gion.

In­deed, ac­cord­ing to lo­cal agents, the amount of con­struc­tion work both un­der pro­posal and in the pipe­line was sig­nif­i­cant – from res­i­den­tial de­vel­op­ments in Glen­vale and Cotswold Hills to new shop­ping cen­tres and sports parks, and crit­i­cal in­fra­struc­ture up­grades such as the Toowoomba Range By­pass and Wag­ner’s Well­camp Air­port.

It was no sur­prise then that in­vestor ac­tiv­ity re­mained ro­bust dur­ing the pre­vi­ous quar­ter on the back of an al­ready tight rental mar­ket.

There also con­tin­ued to be in­ter­est from in­ter­state, par­tic­u­larly from Mel­bourne, due to its prox­im­ity to the Su­rat Basin.

And, while 12 to 18 months ago the re­gion was not reap­ing any sig­nif­i­cant ben­e­fits from min­ing ac­tiv­ity, there were ex­pec­ta­tions that this time around, things would be dif­fer­ent.

The Toowoomba rental mar­ket also continues to at­tract in­vestors, pre­dom­i­nantly within prox­im­ity to the Toowoomba met­ro­pol­i­tan area, as matches ten­ant de­mand, with one REIQ agency reporting very high num­bers of ap­pli­cants re­cently.

Toowoomba’s va­cancy rate has re­mained un­changed since Septem­ber, at 1.3 per cent.

Me­dian weekly rents from the RTA cor­re­spond­ingly con­tinue to record steady growth.

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